ELEMENTS OF MARKETING

UNIT 1

ELEMENTS OF MARKETING Needs: Needs are basic human requirement.

People need food, air, water, clothing, shelter, education, recreation, entertainment.

Maslow’s need hierarchy:1. Physiological Need 2. Security Need3. Social Need4. Esteem Need5. Self Actualization NeedThese needs are not created by marketers. They exist in

human biology and human condition.

ELEMENTS OF MARKETING Wants: Needs become wants when they are

directed to specific object that might satisfy the need.

A person in Aligarh, needs food but he may want Biriyani. A Mathura based person needs food but he may want chat.

Wants are shaped by one’s society. Marketers along with other societal factors influence demand. Marketers might tell you INDICA car can satisfy your need of social status. But marketer cannot create the need of social status.

ELEMENTS OF MARKETING Demand: Demands are wants for specific

product backed by an ability to pay. Many people want INDICA, but only a few are able to buy one.

Marketers must measure the demand that is how many customers are able to buy the product.

ELEMENTS OF MARKETING Market: A group of buyers. For

example, laptop market indicates a group of customers who are interested to buy laptop.

Industry: A collection of sellers Marketer: A marketer is someone

who seeks a response ( attention, purchase, a vote, a donation) from another party, called the prospect.

ELEMENTS OF MARKETING Consumers are basically households. But

customers include households plus businesses.

Consumer Market: A collection of buyers who buy things for their own consumption.

Industrial Market: A collection of buyers who buy goods in order to make or resell a product to others at a profit.

Difference between Sales & Marketing

STARTING POINT

FOCUS MEANS END

SALES Factory Existing Product

Selling & Promoting

Profit through sales volume

MARKETING

Customers Customer Need

Marketing System

Profit through customer satisfaction

A SIMPLE MARKETING SYSTEM

MARKETING MANAGEMENT

Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders.

Marketing Management is an art as well as science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.

Generally, Marketing is understood to mean the sale & purchase of goods & services, but it is narrow thinking to understand it so. The term “Marketing” is very wide. It does not mean only the sale and purchase of goods & services. It means entire process of satisfying the needs of consumers.

It starts with discovery of needs & wants of the consumers, and it continues till these needs & wants are satisfied.

According to Philip Kotler, “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.”

According to American Marketing Association, “Marketing is the performance of business activities that direct the flow of goods & services from producer to consumer or user.”

In a layman's language we can say possing something in front of the end users is known as marketing

Functions of a Marketing Management1) Developing Marketing Strategies and Plans2) Capturing Marketing Insights3) Connecting with customers ( developing strong,

profitable long term relationship with customer)4) Building Strong Brands5) Shaping the market offerings (which includes product

quality, design, features and packaging)6) Delivering Value (make product accessible and

available)7) Communicating Value8) Creating Long Term Growth ( new product

development

Qualities of a Marketing Manager1) Strategic Thinking2) Deep consumer insight and awareness about

own organization. 3) Ability to build & manage strong brands4) Strong conceptual knowledge of marketing.5) Good communication skill and understanding

about business communication. Ability to manage all marketing communication.

6) Leadership and High motivation 7) Global thinking with ability to act locally.